POST UTME LEAD CITY UNIVERSITY 2025 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by \( Q = 2L^{0.5}K^{0.5} \). If the firm's output is 100 units and the price of labor is ₦10 per unit, what is the minimum \cost of production?
Question 2
A firm operates in a perfectly competitive market. If the market price is ₦50, and the firm's marginal \cost is ₦40, what will be the firm's profit?
Question 3
A firm's demand function is given by \( Q = 100 - 2P \). If the firm's marginal revenue function is given by \( MR = 200 - 4P \), what is the firm's optimal price?
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal combination of labor and capital?
Question 5
A firm is considering two different production processes to produce a certain product. Process A requires an initial investment of ₦20 million and has a variable \cost of ₦10 per unit. Process B requires an initial investment of ₦25 million and has a variable \cost of ₦8 per unit. If the firm produces 15,000 units of the product, what is the total \cost of production for each process?
Question 6
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
Question 7
The production function for a firm is given by Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 9 units, and holds capital input cons\tant at 16 units, what is the percentage change in output?
Question 8
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units, what is the total \cost?
Question 9
A consumer's budget constraint is given by \( 2x + 3y = 12 \). If the consumer's indifference curve is represented by the equation ( u(x,y) = x + 2y ), what is the consumer's optimal bundle of x and y?
Question 10
A firm operating in a perfectly competitive market is characterized by which of the following?
Question 11
A government budget is given by B = T + I, where B is the budget deficit, T is tax revenue, and I is government sp\ending. If tax revenue increases by 10% and government sp\ending remains cons\tant at ₦100 billion, what is the new budget deficit?
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal level of labor?
Question 13
The Nigerian government has introduced a new policy to promote industrialization in the country. The policy aims to increase the production of textiles by 20% within the next two years. If the current production level is 10 million units per year, what is the expected production level after two years?
Question 14
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect on the firm's profit-maximizing price?
Question 15
The Nigerian government has introduced a new policy to promote agriculture in the country. The policy aims to increase the production of rice by 15% within the next year. If the current production level is 5 million tons per year, what is the expected production level after one year?
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